Property News & Updates

The site at Perumal Road, near Farrer Park MRT station, Low Keng Huat Ltd put in the top bid of $174.08 million

A residential with first storey commercial site at Perumal Road in Litte India attracted strong interest from developers, with 11 bids submitted at the close of its public tender on Tuesday (10 Jan 2017), announced by Urban Redevelopment Authority (URA). The site is near the Farrer Park MRT station and commercial amenities such as City Square Mall and Mustafa Centre.

Out of the eleven bids received for the site at Perumal Road, near Farrer Park MRT station, Low Keng Huat Ltd put in the top bid of $174.08 million ($1,000.71 psf per plot ratio) which was 4.4% higher than the next highest bid of $958.28 psf per plot ratio from China Construction (South Pacific) Development. Allgreen Properties came in third with a bid of $161.5 million ($928.4 psf per plot ratio).

Forte Suites is a new condominium at Rangoon Road. Walk to Farrer Park MRT and developed by JForte Holdings.

It is interesting to note that 9 out of the 11 bidders bid higher than the top bid for the nearby site (Sturdee Residences) in March 2015. Even the winner of the Sturdee Residences came in at 8.25% higher than the bid placed two years ago (SL Capital bid $786.92psf ppr in March 2015 compared to $851.88psf ppr in the tender closing today)

This clearly indicates that the shortage of residential land sites is being keenly felt by developers, going by the tender results of the first GLS land tender for the year. Developers are clearly looking to replenish their depleting inventory and the Perumal plot offers the added bonus of a small size and therefore an affordable quantum of $174 million.

Sturdee Residences by Sustained Land is located close to Farrer Park MRT station in District 8

The site benefits from its proximity to transport nodes – the Dhoby Ghaut Interchange is only two stops away. Other amenities nearby include the relatively new One Farrer Hotel, Farrer Park Medical Hospital and City Square Mall.

The parcel at Perumal Road is zoned for residential with commercial on the first storey. It had been launched for sale under the Confirmed List in November 2016 under the 2H2016 Government Land Sales Programme.

"The private residential market is showing signs of stabilising and may very possibly recover by 2018. This would coincide well with the launch of the Perumal project," said Mr Wong Xian Yang, head of research and consultancy at OrangeTee.

Analysts put the potential average selling price for units at above $1,700 psf, based on the high land price submitted.

A version of this article appeared in the print edition of The Straits Times on January 11, 2017, with the headline 'Bullish bids in Perumal Road land tender'.